Colin Rice - CDR Finance

This is the proposed outcome from the RC, that is, you the consumer will now pay a fee to both bank and broker in order to apply for a home loan.

Banks behave badly and brokers get punished. Rates will rise and advice and guidance will be limited to a bank officer if the RC recommendations are implemented. We will likely go into a deep recession as well.

Interesting comments from a WA Real Estate stalwart. I do concur.

IT'S TIME !! One of the biggest pointers to a real estate market turning for the better is a fast reducing rental vacancy factor. Perth's vacancies have dropped from a massive 6.8% in September down to 2.9% currently. That is one of the quickest falls in decades. Historically, when the vacancy factor has reduced quickly, the sales market tightens and begins to improve. Other pointers are the reduction in listing stock available (down to 16,000 on the market from 21,000) Perth being now one of Australia's most affordable capitals and of course there's our continuing record low interest rates with most projectionists predicting another rate drop. The only concern is the tightening of banks lending criteria however, we all know that banks are "commercial animals" and if they are losing ground they will do what it takes to attract business. In summary, the economic clock has been a reliable guide to all informed purchasers of real estate for decades and it will be again this cycle. if you have been waiting to buy or upgrade ..., it's time to act!!

Jarrad Mahon from Investors Edge picked this a few years ago from memory?

https://www.watoday.com.au/national/western-australia/the-perth-suburbs-that-haven-t-heard-there-s-a-housing-price-slump-20190109-p50qgd.html

The Perth suburbs that haven't heard there's a housing price slump There are some suburbs bucking the house price slump.

For all the people who want a property crash as per Bill Shortens plan which I believe is just to get votes and won't be implemented, be careful and aware what you are wishing for.

"Please share this post"!

*** Yesterday the CBA strongly proposed to the Royal Commission that all home loan borrowers be legally required to pay $2,300 to Mortgage Brokers every time they want a home loan. The bank won’t pay the broker as they do now, instead you will. ***

Over the past 30 years, whether or not you have personally used a Mortgage Broker, by providing competition and promoting cheaper lenders, the Mortgage Broking industry has halved the profit margins of the Big 4 Banks, as this graph shows.

The outcome of interest rates returning to the pre-broker levels will be about $8,000 per year on an average home loan. So if you have a mortgage your repayments will go up, if you are a tenant your rent will go up.

The Big 4 regained some profits during the GFC when they were approved by Labor to buy the smaller lenders such as St George Bank, Aussie, Rams and BankWest but the popularity of brokers again pushed their profit margins (that you pay) back down.

Currently around 53% of borrowers use a broker and around 65% of first home buyers do. No one has to use a broker, they choose to because it suits them. Every year more borrowers choose a broker over their bank.

Yet the Royal Commission is being told by the CBA and Westpac that brokers are bad for borrowers.

No, but we are just bad for bank profits. Why would more and more borrowers freely choose a broker if it wasn’t in their best interests?

If this happens it will mean borrowers will be forced back to their bank manager and brokers won’t be viable anymore.

Then the Big 4 will be able to restore their profit margins to what they had before brokers. That means higher interest rates for everyone.

The only thing that keeps the banks even slightly honest is fair competition. They are trying to trick the Royal Commission into getting rid of that competition for them.

If this happens, the outcome of the Royal Commission will be the complete opposite of what was meant to happen. More power and less competition for the Big 4 Banks and higher profits at all our expense.

The banks have already raised interest rates and reduced people’s borrowing capacity, using the Royal Commission as their excuse.

It is lower income families and first home buyers who will be most hurt by this.

At this stage the Liberals have shown they understand this blatant attempt at profiteering by the banks and to twist the Royal Commission into their favour but Labor does not."

Why we have 55% market share and growing.

As predicted - the Big 4 banks have announced increased variable interest rates for new and existing clients.

CBA are going up 0.15%

ANZ are going up 0.14%

NAB TBC

WBC announced last week a 0.14% increase

Watch this space - there's likely to be a whole lot of smaller/second/third tier lenders increasing variable rates in the near future.

The power of an offset account used correctly;

LOL

Deloitte released a report on the value mortgage brokers bring to the consumer..

MBIG's The Value of Mortgage Broking report key take-aways The Value of Mortgage Broking report, commissioned by the Mortgage Broking Industry Group, and created by Deloitte Access Economics, demonstrates the value t...

"Your broker behind you" - Mortgage Finance Association of Australia has been launched so kudos.

I predict mortgage broker market share will go from just over 50% to 70% by 2021.

"Industry body Mortgage Finance Association of Australia launches their campaign showing how mortgage brokers help Australians secure finance for more than half of all home loans every year. They provide more choice, keep lenders competitive, and help Australians, like you, find a fairer deal"

Your Broker Behind You 15-second TV commercial Mortgage brokers help Australians secure finance for more than half of all home loans every year. They provide more choice, keep lenders competitive, and hel...

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This could be interesting?

The $600,000 carrot dangling for downsizing Baby Boomers from July 1 The federal government's new downsizer incentive begins on July 1, allowing homeowners to deposit some of the proceeds of the sale of their home into their superannuation fund. But how does it actuall

The latest update for mt Success development;

-External plaster work is done
-Ceiling materials delivered
-Ceiling confirmed for 16-17/7
-Set plasterer confirmed for 18/7
-Window glazing confirmed for 24/7
-Door delivery 24/7
-Lock up booked 25/7
-Sani booked 27/7
-Cabinets booked 31/7

Latest progress update for my Success development;

- Float render done
- Cabinet measure done
- External render to be done this week
- Ceiling fit 12-13/7
- Set booked for 16/7
- Glazing booked for 23/7
- Door delivery 24/7
- Lockup booked for 25/7 (TBC)

This months residential property clock tags Perth at the bottom of the market. Heres hoping the next 2 years bring good fortune to Perth once again.
If you are looking to invest in property get in touch with me so I can run the numbers for you and formulate a plan to achieve and exceed your goals.

The latest update for my Success development;

- Welding for tie downs and steel columns done
- Gutter installed
- Roof cover due by 22/6
- Plastering sand to be delivered Monday
- Plastering to begin once the house is covered and dry

Latest update on my Success retain and build. Coming together nicely.

- Roof frame complete
- Plumbing tube done
- Electrician to do run in etc on Monday 28/5(waiting synergy
number)
- Welder to extend column and secure tie downs following power
connections
- Roof to be booked following tie downs completed

Just got another update on my Success retain and build development. Things are progressing nicely and should be ready for occupation by August.

- Brickwork complete
- Roof Timber delivered
- Roof Carpenter confirmed for start tomorrow

Just got an update on my Success retain and build development. Things are progressing nicely and should be ready for occupation by August.

- Brickwork is around 60%
-Plate high should be mid next week (public holiday tomorrow)
-Timber and roof to be booked in early next week